§ Mr. Mappasked the President of the Board of Trade what action he proposes to take to implement the recommendations of the Monopolies Commission regarding the supply of man-made cellulosic fibres.
§ Mr. CroslandI have already dealt with the Monopolies Commission recommendation on acquisitions in my Statement to the House on 30th June. As far as the other recommendations are concerned, Courtaulds has agreed that it will bring to an end its arrangements with E.F.T.A. producers restricting competition in the supply of cellulosic fibres and will not enter into other similar arrangements. On the question of discrimination, it has assured me that it does not and will not discriminate between its own subsidiaries and other customers in the supply of cellulosic fibres except on purely commercial grounds. I accept this assurance.
As regards the tariff recommendation, conditions have changed to a considerable extent since the commission reported. There have been increased imports and some reduction in tariffs in accordance 369W with our Kennedy Round obligations. Further reductions will take place over the next two years. After a thorough review and in the light of all the present circumstances, including the balance of payments position, I do not propose that there should be a unilateral reduction now in the duties on cellulosic staple fibre and on viscose and acetate yarn. I shall keep the position under review in the light of developments. It is, however, our intention to make a reduction in the duties on man-made cellulosic tow to the level of those on man-made cellulosic staple fibre, and to continue reductions in the duties on tow in line with those which we shall be making on staple fibre under the Kennedy Round Agreement.